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Modern Systems Analysis and Design, 8e (Valacich/George)
Chapter 4 Identifying and Selecting Systems Development Projects
1) What is another term for nonintegrated systems?

A) Islands of information
B) ERP systems
C) SAP systems
D) Enterprise systems
Answer: A
Difficulty: Easy
AACSB: Information Technology
LO: 4.1 Describe the project identification and selection process
Classification: Concept
2) What is the first phase of the SDLC method?

A) Analysis
B) Planning
C) Design
D) Maintenance
Answer: B
Difficulty: Easy
3) The SDLC planning phase consists of which activity?

A) Project completion
B) Project reorganization
1
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C) Project selection
D) Project testing
Answer: C
Difficulty: Moderate
4) Which of the following is true as it pertains to project identification and small organizations?
A) Small organizations normally have a formal process.
B) Small organizations projects are normally borne out of a larger planning process.
C) The proposal process is rigorous.
D) The highest ranking IS manager typically selects the projects.
Answer: D
5) Which of the following is NOT a source for IS development requests?

A) Customers
B) Formal planning groups
C) Business units
D) IS managers
Answer: A
Difficulty: Easy
6) Why would an IS manager request an IS development project?

A) To help meet the organization's goals
B) To move to a new operating environment
C) To provide a new service to customers
D) To gain needed information
Answer: B
Difficulty: Difficult
7) Which of the following is NOT a primary activity in project identification?

A) Identify potential projects.
B) Select IS projects.
C) Stop current projects.
D) Classify development projects.
Answer: C
2
8) Which of the following roles does NOT identify potential development projects?
A) CEO
B) Steering committee
C) User departments
D) Customer focus groups
Answer: D
Difficulty: Easy
3
9) If a project has a small or narrow focus, it most likely was chosen by ________.
A) A business unit
B) Top management
C) A steering committee
D) The IS department
Answer: A
Difficulty: Easy
10) Which of the following factors does NOT have any influence on the selection of a potential
project?
A) Duration
B) The IS manager list
C) Risk
D) Complexity
Answer: B
Difficulty: Easy
11) ________ will mostly likely choose projects that are easy to integrate with the current
hardware and software.
A) Top management
B) Steering committees
C) IS departments
D) User departments
Answer: C
Difficulty: Easy
12) Which of the following is NOT a characteristic of top management when choosing an IS
project selection?
A) Largest project size
B) Strategic focus
C) Enterprise wide consideration
D) Faster development
Answer: D
4
13) Which of the following is NOT a characteristic of a steering committee when making IS
identification and selections?
A) Less concern with cost-benefit analysis
B) Cross functional focus
C) Narrow nonstrategic focus
D) Larger and riskier projects
Answer: A
Difficulty: Easy
14) Which group chooses projects that most often reflect the larger needs of the organization?
A) Business unit
B) Steering committee
C) Functional manager
D) Development group
Answer: B
Difficulty: Easy
15) Which of the following is an example of a project coming from a top-down source?
A) A project identified by a business unit
B) A project identified by customers
C) A project identified by a steering committee
D) A project identified by managers
Answer: C
16) Which of the following groups does NOT identify a bottom-up development project?
A) Business units
B) Managers
C) Top Management
D) IS development group
Answer: C
5
17) As an analyst, which type of project would you most likely have contact with in the
beginning of your career?
A) Top-down projects
B) Strategic goals projects
C) Planning of projects
D) Bottom-up projects
Answer: D
18) Which of the following is NOT a reason a project would be removed from the project
selection list?
A) The IS department feels it is too difficult to implement
B) Inconsistency with overall objectives
C) Redundant functionality
D) Unnecessary
Answer: A
19) What is the second major activity in the project identification and selection process?
A) Identifying potential projects
B) Classifying IS development projects
C) Choosing a final project
D) Identifying a project team
Answer: B
Difficulty: Easy
20) Which of the following is NOT a possible evaluation criteria when ranking projects?
A) Value chain analysis
B) Strategic alignment
C) Cross functional focus
D) Technical difficulty
Answer: C
Difficulty: Easy
6
21) Which evaluation criteria for classifying and ranking projects deals with level of difficulty of
the project?
B) Resource availability
C) Potential benefits
D) Technical difficulty
Answer: D
Difficulty: Easy
22) Considering evaluation criteria for classifying and ranking projects, which criterion concerns
improving profits and customer service?
A) Potential Benefits
B) Project Duration
C) Technical Risks
D) Resource Availability
Answer: A
Difficulty: Easy
23) Which evaluation criterion for classifying and ranking projects deals with helping an
organization achieve its long-term goals?
B) Strategic alignment
C) Potential Benefits
D) Resource availability
Answer: B
Difficulty: Easy
24) What has assisted value chains in having the greatest improvement?
B) Analysis of organization's activities
C) Information systems
D) Removing some processes in the value chain
Answer: C
7
25) How should one think about an organization when conducting a value chain analysis?
A) Understand the costs associated with value chain activities.
B) Identify the projects that support the organizations goals.
C) Consider the organization in terms of inputs/outputs.
D) Look at each individual process within a value chain.
Answer: C
Difficulty: Easy
26) Which of the following is NOT an output in the value chain?

A) Products sold to customers
B) Services
C) Distribution
D) Costs
Answer: D
Difficulty: Easy
27) What is the final activity in the project identification and selection process?
A) Selecting an IS project
B) Producing the IS project
C) Implementing the IS project
D) Delete the project
Answer: A
Difficulty: Easy
28) ________ is a process of considering short- and long- term projects.

A) Project selection
B) Project identification
C) Project determination
D) Project analysis
Answer: A
Difficulty: Easy
8
29) If a project is selected, what is the most likely next step?
A) The project will begin.
B) The project will be funded.
C) The project has to be signed off by management.
D) The project is no longer considered.
Answer: B
30) Which of the following is NOT a possible decision outcome for a project?
A) Accept the project
B) Reject the project
C) Evaluate criteria
D) Proof of concept
Answer: C
Difficulty: Easy
31) Which of the following is NOT a factor when making a project selection decision?
A) End-user development
B) List of ongoing projects
C) Current organizational environment
D) Perceived and real needs
Answer: A
Difficulty: Easy
32) When choosing a weighted system to determine project viability, what should the
organization keep in mind?
A) All requirements should be weighted equally.
B) Weights are subjective.
C) The total points have to equal 100.
D) Requirements and constraints have equal weights.
Answer: B
9
33) Which of the following is NOT included as a total when using a weighted multi-criteria
project?
A) Requirements
B) Constraints
C) Department rankings
D) Overall totals
Answer: C
34) What is the primary deliverable in the initial part of the planning phase?
A) To determine costs
B) To rank projects
C) A detailed projet plan
D) A schedule of specific IS development projects
Answer: D
Difficulty: Easy
35) The term ________ is used when a project is reviewed after each stage to determine its
continuance.
A) Incremental commitment
B) Reevaluation
C) Project continuance
D) Project re-planning
Answer: A
Difficulty: Easy
36) How have organizations traditionally allocated IS resources?

A) Through a formal process
B) With a top-down process
C) Through attempts to solve isolated organizational problems
D) To update billing systems
Answer: C
10
37) Which of the following is NOT a reason why the planning-based approach for projects is
better than the traditional approach?
A) The planning based approach plans for the future.
B) Data structures remain stable.
C) Business processes remain the same for ten or more years.
D) An organization's informational needs change more slowly.
Answer: C
38) Organizations create new information systems to add value.

Answer: TRUE
Difficulty: Easy
39) The scope of information systems is concerned with the entire company.
Answer: TRUE
40) A large organization uses a less formal approach to project selection.

Answer: FALSE
Difficulty: Easy
41) A primary step in project identification is selecting IS development projects.

Answer: TRUE
Difficulty: Easy
42) Top management most often chooses project with a narrow tactical focus.
Answer: FALSE
11
43) A development group selection method looks for projects with fewer development delays.
Answer: TRUE
44) When a steering committee chooses a project it is referred as a bottom-up source.

Answer: FALSE
Difficulty: Easy
45) Projects are identified by bottom and top up sources.

Answer: FALSE
Difficulty: Easy
46) The second step in selection of a project is reviewing the current projects and removing the
ones that do not line up with strategic goals.
Answer: FALSE
47) Transforming raw materials into products is a part of a value chain.

Answer: TRUE
48) Rejection of a project is the only outcome in the classifying and ranking of projects.
Answer: FALSE
12
49) Using a weighted system, requirements and restraints should be given equal weights.
Answer: FALSE
Difficulty: Easy
50) An example of a requirement for project selection is ease of training.

Answer: FALSE
51) The primary deliverable form the planning phase of IS development projects is incremental
commitment.
Answer: FALSE
52) If a project is in the incremental commitment stage, it is waiting to start.

Answer: FALSE
53) The organization should have a good understanding of the business strategy for good project
selection to occur.
Answer: TRUE
Difficulty: Easy
54) The cost of information systems has steadily decreased over time.
Answer: FALSE
13
55) Every successful organization has a mission.
Answer: TRUE
56) Describe all of the sources of information systems development requests.

Answer: During project identification and selection, a senior manager, a business group, an IS
manager, or a steering committee identifies and assesses all possible systems development
projects that an organization unit could undertake. Information systems development requests
come from a variety of sources. One source is requests by managers and business units for
replacing or extending an existing system to gain needed information or to provide a new service
to customers. Another source for requests is IS managers who want to make a system more
efficient and less costly to operate, or want to move it to a new operating environment. A final
source of projects is a formal planning group that identifies projects for improvement to help the
organization meet its corporate objectives.
Classification: Synthesis
57) Identify the three activities in project identification and selection. Describe at least one step
in each activity.
Answer: Project identification and selection consists of three primary activities: 1. Identifying
potential development projects; 2. Classifying and ranking IS development projects; 3. Selecting
IS development projects. Organizations vary as to how they identify projects. This process can
be performed by a key member of top management, a steering committee, user departments,
systems analyst or the development group/senior IS manager. The final activity in the project
identification and selection process is the actual selection of projects for further development.
Project selection is a process of considering both short- and long-term projects and selecting
those most likely to achieve business objectives.
58) What is a top-down planning approach? Identify four advantages to the top-down planning
approach over other planning approaches.
Answer: A top-down planning approach is a generic information systems planning methodology
that attempts to gain a broad understanding of the information system needs of the entire
organization. Broader perspective, improved integration, improved management support, and
better understanding are four advantages.
14
59) List and describe the six evaluation criteria for classifying and ranking projects.
Answer: 1. Value Chain Analysis: Extent to which activities add value and costs when
developing products and/or services. 2. Strategic Alignment: Extent to which the project is
viewed as helping the organization achieve its strategic objectives and long-term goals. 3.
Potential Benefits: Extent to which the project is viewed as improving profits, customer service,
and so forth, and the duration of these benefits. 4. Resource Availability: Amount and type of
resources the project requires and their availability. 5. Project Size/Duration: Number of
individuals and the length of time needed to complete the project. 6. Technical Difficulty/Risks:
Level of technical difficulty to successfully complete the project within given time and resource
constraints.
60) Define incremental commitment. Does it always result in a working system? Why or why
not?
Answer: Incremental commitment is a systems analysis and design strategy in which the project
is reviewed after each phase and continuation of the project is rejustified in each of these
reviews. Incremental commitment does not always result in a working system. Incremental
commitment permits management and the project team to reevaluate the system's costs, benefits,
and risks in light of changing business conditions. If business conditions, system costs, system
benefits, and/or risks have changed, the project may be cancelled.
15
61) There is a need for improved information systems project and identification. Describe the
indicators that support the previous statement.
Answer: The need for improved information systems project identification and selection is
readily apparent when we consider factors such as the following:
1. The cost of information systems has risen steadily and approaches 40 percent of total expenses
in some organizations.
2. Many systems cannot handle applications that cross organizational boundaries.
3. Many systems often do not address the critical problems of the business as a whole or support
strategic applications.
4. Data redundancy is often out of control, and users may have little confidence in the quality of
data.
5. Systems maintenance costs are out of control as old, poorly planned systems must constantly
be revised.
6. Application backlogs often extend three years or more, and frustrated end users are forced to
create (or purchase) their own systems, often creating redundant databases and incompatible
systems in the process.
62) Which of the following is NOT a consideration when discussing the need for improved IS
project selection?
A) Systems cannot handle applications that cross organizational boundaries.
B) Poorly planned systems must be constantly revised.
C) Data redundancy is out of control.
D) The cost of information systems has remained steady.
Answer: D
LO: 4.2 Describe the corporate strategic planning and information systems planning process
63) Which of the following is NOT a step in the corporate strategic planning process?
A) Current enterprise
B) Future enterprise
C) IS Corporate plan
D) Strategic plan
Answer: C
Difficulty: Easy
16
64) A ________ clearly states what business a company is in.
A) Corporate statement
B) Current plan
C) Mission statement
D) Strategic plan
Answer: C
Difficulty: Easy
65) When do executives develop a mission statement?

A) At the beginning of the fiscal year
B) During corporate strategic planning
C) At the beginning of the project
D) During the board of director meeting
Answer: B
Difficulty: Easy
66) What kind of statement is "We are in the business of designing, fabricating, and selling to
retail stores high-quality wood furniture"?
A) Business statement
B) Mission statement
C) Goal statement
D) Corporate policy
Answer: B
67) What refers to a broad and timeless goal for the organization?
A) A competitive strategy
B) The strategic plan
C) The objective statements
D) The mission statement
Answer: C
Difficulty: Easy
17
68) Which of the following is NOT a generic strategy identified by Porter?
A) Low cost producer
B) Product differentiation
C) Product niche
D) Product introduction
Answer: D
69) Which Porter strategy deals with competing in an industry on the basis of products to the
consumer?
A) Value added
B) Low cost producer
C) Product differentiation
D) Product Focus
Answer: B
Difficulty: Easy
70) Which Porter strategy has a narrow market focus?

A) Low cost producer
B) Product niche
C) Product differentiation
D) Service cost to the consumer
Answer: B
71) Which of the following does a company NOT need to understand in order to build effective
information systems?
A) Its mission
B) Its objectives
C) Its current IS project list
D) Its strategy
Answer: C
Difficulty: Easy
18
72) Information systems planning includes all of the following steps except ________.
A) Current situation
B) Future situation
C) Schedule of projects
D) Selection of projects
Answer: D
Difficulty: Easy
73) Which approach to planning begins with an analysis of an organization's mission?

A) Top-down planning
B) Top-down projects
C) Bottom up planning
D) Bottom up goals
Answer: A
74) Identifying the relationships between organizational entities and each business function
relates to which kind of matrix?
A) Unit-to-function
B) Location-to-unit
C) Function-to-process
D) Entity-to-process
Answer: A
75) The second activity in the ISP process is ________.

A) Describe the target situation, trends, and constraints
B) Describe the current situation
C) Develop a transition strategy and plans
D) Develop the logical design
Answer: A
19
76) The third activity in the ISP process is ________.
A) Describe the target situation, trends, and constraints
B) Describe the current situation
C) Develop a transition strategy and plans
D) Develop the logical design
Answer: C
Difficulty: Easy
77) Which of the following is NOT a component on the typical information systems plan?
A) Corporation history
B) Constraints on IS development
C) Informational inventory
D) The short-term plan
Answer: A
78) The overall IS plan may influence ________.

A) Whether a systems analyst will be on the project
B) The organization's strategic plan
C) All development projects
D) The mission of the company
Answer: C
79) Which section of the ISP deals with the set of long-range strategies chosen by the IS
department?
A) Overall systems needs strategies
B) Mission and objectives of IS
C) Informational inventory
D) Conclusion
Answer: A
20
80) Objective statements is the method of an organization fulfilling its mission and objectives.
Answer: FALSE
81) Hyundai practices the low-cost producer competitive strategy.

Answer: TRUE
Difficulty: Easy
82) In information systems planning, technology blueprints would be found in the current
situation step.
Answer: FALSE
83) The most used approach to describing the current situation is a top-up approach.
Answer: FALSE
Difficulty: Easy
84) When an organization reviews their short and long term goals for development, the
organization uses an IS plan to document it.
Answer: TRUE
Difficulty: Easy
85) Define and briefly discuss corporate strategic planning.

Answer: To make effective project selection decisions, a corporation must know where it is,
where it is going, and the path it will take to get there. Corporate strategic planning is based on
this premise. Corporate strategic planning can be viewed as a three step process: (1) current
enterprise, (2) future enterprise, and (3) strategic plan. During corporate strategic planning,
mission statements, statements of future corporate objectives, and strategies are developed.
21
86) Identify and describe the generic competitive strategies. Provide an example for each
strategy.
Answer: Low-Cost Producer: This strategy reflects competing in an industry on the basis of
product or service cost to the consumer. For example, in the automobile industry, the South
Korean-produced Hyundai is a product line that competes on the basis of low cost.
Product Differentiation: This competitive strategy reflects capitalizing on a key product criterion
requested by the market (for example, high quality, style, performance, roominess). In the
automobile industry, many manufacturers are trying to differentiate their products on the basis of
quality (e.g., "At Ford, quality is job one.").
Product Focus or Niche: This strategy is similar to both the low-cost and differentiation
strategies but with a much narrower market focus. For example, a niche market in the automobile
industry is the convertible sports car market. Within this market, some manufacturers may
employ a low-cost strategy and others may employ a differentiation strategy based on
performance or style.
87) Define and discuss information systems planning.

Answer: ISP is an orderly means of assessing the information needs of an organization, and
defining the systems, databases, and technologies that will best satisfy those needs. During ISP,
current and future organization informational needs will be modeled. Also, strategies and project
plans to move the current information system and technologies to their desired future state will
be developed. ISP looks at information systems and technologies in terms of how they can help
the business achieve its objectives defined during corporate planning. ISP includes three key
activities. The first activity involves assessing current IS-related assets; the second step involves
developing target blueprints of the resources; a series of scheduled projects is defined in the third
step.
Difficulty: Easy
22
88) Briefly describe four of the ten types of matrices that are beneficial during information
systems planning.
Answer: The types of matrices typically developed include the following:
• Location-to-Function: This matrix identifies which business functions are being performed at
various organizational locations.
• Location-to-Unit: This matrix identifies which organizational units are located in or interact
with a specific business location.
• Unit-to-Function: This matrix identifies the relationships between organizational entities and
each business function.
• Function-to-Objective: This matrix identifies which functions are essential or desirable in
achieving each organizational objective.
• Function-to-Process: This matrix identifies which processes are used to support each business
function.
• Function-to-Data Entity: This matrix identifies which business functions utilize which data
entities.
• Process-to-Data Entity: This matrix identifies which data are captured, used, updated, or
deleted within each process.
• Process-to-Information System: This matrix identifies which information systems are used to
support each process.
• Data Entity-to-Information System: This matrix identifies which data are created, updated,
accessed, or deleted in each system.
• Information System-to-Objective: This matrix identifies which information systems support
each business objective as identified during organizational planning.
Difficulty: Easy
89) Describe three ways CASE tools help to sort out the information in matrices.
Answer: Management of Information: A big part of working with complex matrices is managing
the information. Using the dictionary features of the CASE tool repository, terms can be defined
or modified in a single location. All planners will therefore have the most recent information.
Matrix Construction: The reporting system within the CASE repository allows matrix reports to
be easily produced. Because planning information can be changed at any time by many team
members, an easy method to record changes and produce the most up-to-date reports is
invaluable to the planning process.
Matrix Analysis: Possibly the most important feature CASE tools provide to planners is the
ability to perform complex analyses within and across matrices. This analysis is often referred to
as affinity clustering.
Difficulty: Easy
23
90) What is affinity clustering? Why is it important?
Answer: Affinity clustering is the process of arranging planning matrix information so that
clusters of information with a predetermined level or type of affinity are placed next to each
other on a matrix report. It is important because it allows planners a means to perform complex
analyses. Thus, affinity clustering is the process of arranging matrix information so that clusters
of information with some predetermined level or type of affinity are placed next to each other on
a matrix report.
91) Define and briefly discuss information systems planning (ISP).

Answer: Information systems planning is an orderly means of assessing the information needs of
an organization, and defining the systems, databases, and technologies that will best satisfy those
needs. During ISP, current and future organization informational needs will be modeled. Also,
strategies and project plans to move the current information system and technologies to their
desired future state will be developed. ISP looks at information systems and technologies in
terms of how they can help the business achieve its objectives defined during corporate planning.
ISP includes three key activities. The first activity involves assessing current IS-related assets;
the second step involves developing target blueprints of the resources; a series of scheduled
projects is defined in the third step.
92) What is a large network of networks?

A) Electronic commerce
B) The Internet
C) EDI
D) A local area network
Answer: B
Difficulty: Easy
LO: 4.3 Describe the three classes of Internet electronic commerce applications: business-to-
consumer, business-to-employee, and business-to-business
24
93) Which of the following is NOT a general class of Internet electronic commerce?
A) B2B
B) B2E
C) G2B
D) B2C
Answer: C
Difficulty: Easy
94) What do trading partners use to establish computer-to-computer links to allow for electronic
data exchange?
A) B2B
B) The Internet
C) EDI
D) LAN
Answer: C
95) Which of the following is an unknown that should be addressed when designing an Internet
application?
A) Connection speed
B) How many users will access the application at one time
C) How much it costs purchase satellite service
D) What the time zone of the user is
Answer: A
25
96) What stands as the most outstanding representation of global networking?
A) Business to business applications
B) The Internet
C) Protocols
D) Electronic commerce
Answer: B
97) The most connected network in the world is the Internet.

Answer: TRUE
Difficulty: Easy
98) B2E is not a mode of electronic commerce.

Answer: FALSE
Difficulty: Easy
99) What is electronic commerce? List and describe the electronic commerce models.
Answer: Using the Internet to support day-to-day business activities is broadly referred to as
electronic commerce (EC). There are three general classes of Internet EC applications: business-
to-consumer (B2C), business-to-business (B2B), and business to- employee (B2E). B2C refers to
business transactions between individual consumers and businesses. B2B refers to business
transactions between business partners, such as suppliers and intermediaries. B2E refers to the
use of the Internet within the same business to support employee development and internal.
26
100) What are the unknowns when designing and building Internet applications? Provide an
example of each.
Answer:
1. User
• Concern: Who is the user?
• Example: Where is the user located? What is the user's expertise or education? What are the
user's expectations?
2. Connection Speed
• Concern: What is the speed of the connection and what information can be effectively
displayed?
• Example: Modem, Cable Modem, DSL, Satellite, Broadband, Cellular
3. Access Method
• Concern: What is the method of accessing the net?
• Example: Web Browser, Personal Digital Assistant (PDA), Web-enabled Cellular Phone,
Tablet, Web-enabled Television.
Difficulty: Easy
27

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Modern Systems Analysis and Design

8th Edition Valacich Test Bank

Test Bank: https://testbankpack.com/p/test-bank-for-modern-

Solution Manual: https://testbankpack.com/p/solution-manual-for-

1) What is another term for nonintegrated systems?

2) What is the first phase of the SDLC method?

3) The SDLC planning phase consists of which activity?

5) Which of the following is NOT a source for IS development requests?

6) Why would an IS manager request an IS development project?

7) Which of the following is NOT a primary activity in project identification?

26) Which of the following is NOT an output in the value chain?

28) ________ is a process of considering short- and long- term projects.

36) How have organizations traditionally allocated IS resources?

38) Organizations create new information systems to add value.

40) A large organization uses a less formal approach to project selection.

41) A primary step in project identification is selecting IS development projects.

44) When a steering committee chooses a project it is referred as a bottom-up source.

45) Projects are identified by bottom and top up sources.

47) Transforming raw materials into products is a part of a value chain.

50) An example of a requirement for project selection is ease of training.

52) If a project is in the incremental commitment stage, it is waiting to start.

56) Describe all of the sources of information systems development requests.

65) When do executives develop a mission statement?

70) Which Porter strategy has a narrow market focus?

73) Which approach to planning begins with an analysis of an organization's mission?

75) The second activity in the ISP process is ________.

78) The overall IS plan may influence ________.

81) Hyundai practices the low-cost producer competitive strategy.

85) Define and briefly discuss corporate strategic planning.

87) Define and discuss information systems planning.

91) Define and briefly discuss information systems planning (ISP).

92) What is a large network of networks?

97) The most connected network in the world is the Internet.

98) B2E is not a mode of electronic commerce.

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